Skip Navigation

Skip Navigation

Financial advice: it’s like satnav for your super

Can you confidently drive off into the sunset knowing your superannuation has enough in the tank? Discover the value of advice and how the right kind can steer you in the right direction to your best possible retirement.

Is your super able to keep up with life in the slow lane?

As you approach the crest of your working life and look down the open road towards retirement, the question isn’t ”are we there yet?”, it’s will your superannuation get you ”there”. In other words, have you got enough in the tank?

Before you drive off into the sunset, it pays to have a reliable roadmap to retirement, and that’s where the value of financial advice can help. Think of it as your superannuation satnav, able to pilot you to Dreamsville. Population: you.

It’s time to buckle up and embark on three unique journeys of people just like you, modelled by CoreData in research commissioned by Sunsuper, and see how each is at least $197,000 better off throughout their retirement.

Open the tabs below to discover more.

The value of advice: Lisa is $213,000 better off throughout her retirement because she sought financial advice.

Lisa, 58, single, registered nurse transitioning to retirement

Over the past few years, Lisa has worked as a senior, full-time nurse. Now she feels it is the right time to step back and transition to her retirement and independence. After speaking with her financial adviser, Lisa is on track to ease back on her working hours now and retire fully at age 65.

Lisa, 58, single, registered nurse transitioning to
                                            retirement

Click the numbered markers to follow Lisa’s journey.

The value of advice for Lisa is a comfortable retirement, with more super, and less government reliance.

What is the value of advice for Lisa from age 58 until retirement – age 65?

PV total
-$45,000
Less in total tax paid
PV retirement
+$3,000
More drawn from Retirement Income Account in first year of retirement
ROI
+1.7%
Additional average return on investments

$

Lisa paid for financial advice:

$3,000

up front +

$1,500

each year from age 58 until she retires at 65

PV net financial
+$24,000
Additional net assets at retirement
PV interest
-$9,000
Less total interest paid
PV cumulative
+$17,000
Additional net earnings on superannuation balance

What is the value of advice for Lisa from age 58 until life expectancy – age 87?

PV total
-$75,000
Less in total tax paid
PV retirement
+$12,000
More drawn from Retirement Income Account each year of retirement
ROI
+3.1%
Additional average return on investments

$

Lisa paid for financial advice:

$3,000

up front +

$1,500

each year from age 58 until her life expectancy of 87

PV net financial
$213,000
Additional net assets at life expectancy
PV interest
-$168,000
Less required reliance on government age pension payments
PV cumulative
+$306,000
Additional net earnings on superannuation balance
1/2
Age 58
Retirement age 65
Family Single, empty nester
Income $60,000 p.a.
Living expenses $35,000 p.a.
Additional expenses $5,000 for two holidays every year
Superannuation balance $250,000
Non-super financial investments $30,000
Home Yes, with $150,000 mortgage
Investment property Yes, with $200,000 mortgage
Other liabilities $10,000 credit card
Insurance $29,000 Sunsuper default life + TPD insurance cover
Future lump sum $100,000 inheritance in ten years

Advised vs Unadvised

Advised

Lisa advised:

Lisa paid significantly less tax over her lifetime.

Lisa didn’t reduce her spending in retirement and also paid for two holidays each year.

Lisa retired at age 65, comfortable that she had enough in savings.

VS

Unadvised

Lisa unadvised:

Had Lisa not sought financial advice, she would have paid more tax and interest.

Lisa would have experienced more financial pressure during retirement as she would have had fewer financial assets to utilise.

Listen to our latest podcast on the value of advice research and Lisa’s case study.

Listen now

The value of advice: David and Jenny are $695,000 better off throughout their retirement because they sought financial advice.

Couple, David and Jenny, both 60, close to retirement

David and Jenny are both 60 and close to retirement. David is a self-employed tradesperson, and Jenny is a part-time teacher. They are comfortable moving into retirement, but when David is suddenly forced to retire early due to an injury, they seek financial advice.

Click the numbered markers to follow their journey.

The value of advice gives David and Jenny a diverse and secure future, even with David having to retire early.

What is the value of advice for David and Jenny from age 60 until Jenny’s retirement – age 65?

PV total
-$34,000
Less in total tax paid
PV retirement
+$54,000
More drawn from Retirement Income Accounts in first year of retirement
Credit card
-$39,000
Less in total debt to pay off

$

David and Jenny paid for financial advice:

$3,000

up front +

$1,500

each year from age 60 until Jenny retires at 65

PV net financial
+$465,000
Additional net assets at Jenny’s retirement
PV interest
-$20,000
Less loan liability outstanding
PV cumulativ
+269,000
Additional net earnings on superannuation balances

What is the value of advice for David and Jenny from age 60 until age 88?

PV retirement
+$45,000
More drawn from Retirement Income Accounts each year of retirement
PV total investment income
+$227,000
Additional investment income outside of super

$

David and Jenny paid for financial advice:

$3,000

up front +

$1,500

each year from age 60 until Jenny’s life expectancy at 90

PV net financial
+$695,000
Additional net assets at age 88
PV total TPD payout
+353,000
Additional Total & Permanent Disability payout to David
PV cumulative
+$802,000
Additional net earnings on superannuation balance
1/2
David Jenny
Age David: 60 Jenny: 60
Family David and Jenny: Three adult children with grandchildren
Income David: $180,000 p.a. (self-employed) Jenny: $60,000 p.a.
Living expenses David and Jenny: $55,000 together p.a.
Additional expenses David and Jenny: $8,000 together for yearly holidays in retirement
Value of business David: $700,000 Jenny: -
Superannuation balance David: $100,000 Jenny: $250,000
Non-super financial investments David: $100,000 Jenny: $50,000
Home David and Jenny: Yes
Investment property David and Jenny: Yes, with $350,000 mortgage
Other liabilities David and Jenny: $10,000 car loan
Insurance David: $25,000 Sunsuper default life + TPD insurance cover Jenny: $25,000 Sunsuper default life + TPD insurance cover

Advised vs Unadvised

Advised

David and Jenny advised:

Jenny was still able to retire at 65 even though her husband was forced into early retirement.

David sold his business once forced into retirement and invested proceeds into superannuation.

Both were able to live comfortably and take annual holidays.

VS

Unadvised

David and Jenny unadvised:

Had David and Jenny not sought financial advice, they would have been unable to leave a sizeable inheritance.

They would have retained their investment property into retirement which would have carried more financial risk and higher management burden.

The value of advice: Susan and Kevin are $197,000 better off throughout their retirement because they sought financial advice.

Susan and Kevin, early 70s, enjoying retirement

Susan and Kevin are both in their early 70s and enjoying the fact that things are winding down. Kevin’s desire to manage his investments has taken a back seat and he is unsure if their current savings are enough to maintain their lifestyle and leave a bequest to fund their grandchildren’s private schooling.

Click the numbered markers to follow their journey.

The value of advice for Susan and Kevin means they can maintain their lifestyle while putting away something for their grandchildren.

What is the value of advice for Susan and Kevin from their early 70s to life expectancy?

PV Retirement Icon
+$25,000
More drawn from Retirement Income Accounts each year of retirement
ROI Icon
+2.7%
Additional overall return on investments

$

Susan and Kevin paid a one-off fee of

$2,000

for financial advice

PV net financial
+$197,000
Additional net assets at life expectancy
PV interest
-$2,000
Less total interest paid
PV cumulative
+334,000
Additional net earnings on superannuation balance
Susan Kevin
Age Susan: 70 Kevin: 72
Family Susan and Kevin: Three adult children with five grandchildren
Living expenses Susan and Kevin: $45,000 together p.a.
Additional expenses Susan and Kevin: $5,000 p.a. in retirement for holidays
Superannuation balance - SMSF Susan and Kevin: $450,000 p.a. together
Non-super financial investments Susan & Kevin: $20,000 together
Home Susan and Kevin: Yes
Additional funds Susan and Kevin: Receive $400,000 from downsizing their home

Advised vs Unadvised

Advised

Susan and Kevin advised:

Susan and Kevin were comfortably able to take annual holidays, as their Sunsuper Retirement income account worked hard for them.

They could leave more than $300,000 as a bequest for their grandchildren.

Closing their self-managed super fund (SMSF), and rolling into Sunsuper allowed them to focus more on enjoying their retirement.

VS

Unadvised

Susan and Kevin unadvised:

Had Susan and Kevin not sought financial advice, they would have been unable to meet their bequest goal, so their grandchildren could not have attended private school.

They would have retained their self-managed super fund (SMSF), leaving them having to manage their own super.

Methodology
Model Assumptions
The New School of Super

Join Sunsuper’s Dream Team Chief Economist Brian Parker and Head of Advice and Retirement Anne Fuchs in our podcast series as they discuss money matters, your super and the things that could affect your financial dreams now, and in the future.

Listen now

Talk to your financial adviser or get some advice through Sunsuper

The right financial adviser can help you navigate the road to your retirement dreams. To get the conversation started, just fill in your details and we’ll be in touch, or find out about the many ways to get advice through Sunsuper.

Request a callback Advice options

Or call us!

We're here to help

13 11 84

Video Player